Big Oil and its allies are attacking the International Energy Agency for forecasting a relatively imminent peak in fossil-fuel demand and the rapid uptake of #renewables
The fossil fuel industry is shooting the messenger, because the message contains the words "stranded assets".
If the banks hear that message, that industry is DONE.
That sound you hear (faintly, for now), is the turning of valves in the most important pipeline of them all: the #MoneyPipeline.
"Banks in #Europe lead retreat away from oil and gas clients
Trend is expected to pick up amid tighter #climate regulations"
"Private credit managers are doing significantly more fossil-fuel deals now than just a few years ago, as they step into a void left by banks exiting assets they worry pose too big a climate risk."
"The 15th annual Banking on Climate Chaos (BOCC) report looked at how the top 60 #banks in the world are underwriting and lending to over 4,200 #FossilFuel firms.
Since the Paris Agreement to limit global warming was signed in 2016, these banks have financed fossil fuels with $6.9 trillion (€6.4 trillion). The report says $3.3 trillion (€3 trillion) - almost half of this amount - went towards fossil fuel expansion alone."
"The report shows high bank financing for the most climate-damaging fossil fuel practices:
Tar sands extraction
Ultra deepwater offshore drilling
Fracking
The top 60 banks by asset size unabashedly financed harmful practices to sensitive biomes: UniCredit committed $265 million to companies involved in Arctic drilling and Bank of America committed to companies extracting oil & gas in the Amazon biome to the tune of $162 million."
How (some) executives at (some) financial institutions look at #ClimateRisk
A thread.
"In September to November 2023, Market Forces conducted an online survey of 150 investors at some of the world’s biggest financial institutions across the UK, USA, Singapore, Japan, Australia, Hong Kong and Belgium"
These are c-suite level people.
"The U.S. Treasury Department's Office of the Comptroller of the Currency (#OCC) carried out its first #ClimateRisk assessment of more than two dozen banks in recent months, laying the groundwork for heightened scrutiny of Wall Street's accounting for such threats.
The regulator used the discovery review to establish a baseline of banks' practices so it has a yardstick with which to assess their progress in implementing the guidance."
"The report from the UN's environmental wing, #UNEP, also revealed that despite decades of calls for ending finance flows towards sectors that harm some of humanity's most valuable assets, those investments currently account for a whopping 7 percent of global GDP."
Four banks quit initiative assessing #climate targets
"The lenders have abandoned efforts for the Science Based Targets Initiative (#SBTi) to validate their goals because of concerns it could hinder their ability to continue financing #FossilFuels, the sources said."
Um.
This shows two things:
SBTi is effective
You can tell exactly which banks are unwilling to close the #MoneyPipeline to the planet wreckers.
"Whereas the International Energy Agency projected that we’d hit peak fossil-fuel use in 2030, the U.S. Energy Information Administration came to a very different conclusion: It saw demand for fossil fuels rising through at least 2050. The difference between the two agency’s models is how they treat #GovernmentPolicy."
What drives it varies: from consumer subsidies to tax breaks to producers.
If you think the chart is shocking wait till you see the total: $7 tn in 2022 if you count all the externalities like healthcare costs from air pollution.
Even before the war in Ukraine, the total was $ 6 tn.
Estimated by that socialist bunch, the IMF.
"An #ImpliedTemperatureRise is typically calculated based on projected future greenhouse gas #emissions. It estimates the increase in global temperatures that would occur by 2100 if the whole economy were to overshoot its carbon budget to the same degree as a fund’s portfolio."
This could be very useful IFF it is truly "hard to game".
"#PensionFunds and other institutional #investors in #Europe have excluded some major oil and gas companies from their portfolios in recent years.
Financial Exclusion Tracker: The most common motivation for excluding companies is climate/fossil fuels, with 40%, or 13,929 out of 34,882 investors and banks citing this reason for dumping a particular stock."
That sound you hear is the creaking of valves which have long been stuck in the "fully open" position. The flow in the #MoneyPipeline to #FossilFuel companies is starting to be redirected elsewhere.
In the US, the red states that have been barred from considering ESG in their portfolios will be holding #StrandedAssets sooner or later.
"Markus Müller, #DeutscheBank's ESG Chief Investment Officer, has recently issued a warning to investors about the looming risk of sudden devaluation due to #ClimateChange. "
The implementation of #ClimateRisk disclosure rules in regions such as the #EuropeanUnion and #California has made potential losses increasingly apparent to investors."
"One bill — already approved by the [California State] Senate — would force about 5,300 #US corporations earning more than $1 billion and doing business in #California to annually report their global [greenhouse gas] #emissions that contribute to #ClimateChange.
Another bill that won Senate approval would require more than 10,000 companies with revenues exceeding $500 million to detail how climate change poses #FinancialRisks to their [worldwide] #operations."
"Big banks are bracing for a sweeping new climate law in California that would for the first time force them to calculate and disclose carbon emissions tied to lending. "